Guardion Health Sciences Announces Financial Results for the Quarter Ended March 31, 2023

Viactiv Product Line Total Revenue Increased approximately 37% for the Quarter Ended March 31, 2023 as compared to the Quarter Ended March 31, 2022

HOUSTON, May 15, 2023 (GLOBE NEWSWIRE) -- Guardion Health Sciences, Inc. (Nasdaq: GHSI) (“Guardion” or the “Company”), a clinical nutrition company that offers a portfolio of science-based, clinically-supported products designed to support the health needs of consumers, healthcare professionals and providers and their patients, announced its financial results for the three months ended March 31, 2023.   The Company also provided a corporate update to stockholders.

Financial and other highlights for the three months ended March 31, 2023 include the following (all common share and per share amounts shown below have been adjusted to reflect the 1-for-50 reverse stock split effective January 6, 2023):

• Total revenue was $3,185,689 for the three months ended March 31, 2023, as compared to $2,384,619 for the three months ended March 31, 2022, an increase of $801,070 or 33.6%. The increase in total revenue was driven by increased sales of the Viactiv product line, which accounted for approximately 97% of the Company’s total revenue for the three months ended March 31, 2023.
• Gross profit was $1,335,302 for the three months ended March 31, 2023, as compared to $1,096,457 for the three months ended March 31, 2022, an increase of $238,845 or 21.8%. The increase in gross profit was primarily attributable to an increase in sales from the Viactiv product line.
• Gross margin for the three months ended March 31, 2023 was 41.9%, as compared to 46.0% for the three months ended March 31, 2022. Gross margin decreased by 4.1 percentage points or 8.9% in 2023 as compared to 2022 because of increased transportation, fulfillment and third-party logistics costs.
• Total operating expenses for the three months ended March 31, 2023 were $2,799,309, as compared to $3,716,505 for the three months ended March 31, 2022, a decrease of $917,196 or 24.7%.
• Loss from operations for the three months ended March 31, 2023 decreased to $(1,464,007), as compared to $(2,620,048) for the three months ended March 31, 2022, a reduction of $1,156,041 or 44.1%.
• As a result of the aforementioned factors, and the non-cash gain (loss) from the change in fair value of the warrant derivative liability of $1,898,100 and $(2,682,500) for the three months ended March 31, 2023 and 2022, respectively, net income was $533,091 for the three months ended March 31, 2023, as compared to a net loss of $(5,300,987) for the three months ended March 31, 2022.
• Basic and diluted net income (loss) for the three months ended March 31, 2023 was net income of $0.42 per share, as compared to a net loss of $(6.77) per share for the three months ended March 31, 2022, based on 1,267,340 weighted average common shares outstanding in 2023 and 783,018 weighted average common shares outstanding in 2022.
• Cash used in operations for the three months ended March 31, 2023 was $1,879,210, as compared to $2,226,473 for the three months ended March 31, 2022.
• The Company had unrestricted cash and cash equivalents of $8,774,626 as of March 31, 2023.
• During the three months ended March 31, 2023, the Company redeemed for cash all of the outstanding shares of Series C convertible redeemable preferred stock and Series D redeemable preferred stock that were issued and outstanding at December 31, 2022.
• On January 24, 2023, the Company received a letter from The Nasdaq Stock Market LLC stating that the Company had regained compliance with the minimum bid price requirement of $1.00 per share for continued listing on The Nasdaq Capital Market.